PEICMC Annual Report 2026

PRINCE EDWARD ISLAND CANNABIS MANAGEMENT CORPORATION Notes to Financial Statements Year Ended March 31, 2026

17. FINANCIAL RISK MANAGEMENT (continued) The Corporation's objective is to maintain cash and marketable securities to meet its liquidity requirements for a minimum 60 day period. This objective was met for the reporting period. Funding for long term liquidity needs are secured by adequate amounts of committed credit facilities. The Corporation's existing cash resources, trade receivables, and cash generated from operations significantly exceed the current cash outflow requirements. The Corporation's contractual financial liabilities as at March 31, 2026 matures as follows:

Current

Non-Current

After 5 Years

6-12 months

1-5 Years

Within 6 months $2,625,389 - 119,400 $2,744,789

Accounts payable and accrued liabilities Due to the Province Lease liabilities

$ - $4,016,710 119,400 $4,136,110

$

- -

$

- -

$243,805 $243,805

$1,030,445 $1,030,445

18. CAPITAL MANAGEMENT The capital structure of the Corporation currently consists of amounts due to related parties and lease liabilities. The Corporation manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the company may arrange more loans or advances from related parties. Management reviews its capital management approach on a regular basis. The Corporation is not subject to externally imposed capital requirements.

42 | PEICMC 2025-2026 Annual Report